1994 AGN OCT 18 I11 - Laserfiche WebLink

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CITY OF CULTON AGENDA REPORT For Council Meeting of October 18, 1994 TO: Honorable Mayor, City Council, and City Manager FROM: Thomas K. Clarke, Electric Utility Director �� Date: 10/11/94 SUBJECT: AUTHORIZE THE EXECUTION OF THE 1994 SUPPLEMENTAL AGREEMENT BETWEEN COLTON AND SOUTHERN CALIFORNIA EDISON COMPANY FOR THE INTEGRATION OF THE CITY' S ENTITI,�MENT OF SAN JUAN UNIT NUl'VIBER 3 BACKGROUND In July of 1993, the City of Colton purchased a 30 megawatt share of the San Juan 3 generating unit. Negotiations with Southern California Edison Company (Edison) pernutted a phasing in of the capacity credit of this purchase over three yea.i-s. One of the terms of these negotiations was specific notification of the integra,tion of the resource into the Edison control area. This notification must be given before Colton can use and get credit, for billing purposes, of the San Juan 3 power. STATEMENT OF THE PROBLEM Before the City of Colton can get credit for its ownership of the San Juan 3 power, a Supplemental Agreement between the City and Edison must be executed. This Agreement notifies Edison of our intention to integrate our errtitlement of the San Juan urut. ALTERNATIVES Without the execution of the Agreement, the City would not get credit from Edison for the capacity and energy from the San Juan unit. This would mean that additional costs would be incurred to satisfy our corrtra.ctual obligation with Edison to serve the City's electrical requirements. It would not be in the best interests of the Electric Utility, or its customers, to delay the execution of the 1994 Supplementa.l Agreement. Page 1 of 2 Item No. �